Market commentary in the interim report for Q3, 2023
In the main, NCC is impacted by the general economic situation and the GDP trend. Cost increases, rising interest rates and uncertainty about future economic development have a dampening effect on the market. Over the long term, higher prices could lead to lower demand, especially in certain segments. Rising interest rates also affect interest in investing in new properties. The market for residential units and offices is impacted most tangibly by the economic situation.
At the same time, the long-term market conditions for contracting operations, property development and industrial operations in the Nordic region remain positive. There are plans for large industrial investments in parts of Sweden. There is an underlying demand for public buildings, such as schools, prisons, hospitals and retirement homes. However, the economic situation in municipalities and regions could reduce or delay demand in some cases.
Urban expansion and the emergence of new growth regions are driving initiatives for infrastructure in city areas, including roads, public transport, water and wastewater, and energy solutions. In general, the market for renovation and refurbishment is also healthy. There is also underlying demand for residential units, although this is being impacted by the economic situation.
The countries in which NCC has infrastructure operations have ambitious plans and investment initiatives in renewal, refurbishment and maintenance of national and regional infrastructure. Demand for asphalt and stone materials is driven by investments in infrastructure and maintenance, as well as general construction and, to some extent, the economic situation of public customers.